A large study and another separate report done by the Insurance Research Council (IRC) points to payouts that were much higher when the injured party was represented by an attorney. Another study presented by the All-Industry Research Advisory Council (ARAC) reached the same conclusion, proving that when it comes to personal injury claims, having an attorney on your side can make a large monetary difference when it comes to the value of your case.
Study: Paying For Auto Injuries: Consumer Panel Survey of Auto Accident Victims
The IRC study surveyed 6,000 people who had been injured in auto accidents to determine the types of injuries, treatment, economic losses and reimbursement they experienced. Questions were asked regarding the settlement amount that victims received from insurance companies. The results were surprising to some, but not to most personal injury lawyers or insurance companies. Victims who had an attorney on their side received settlements of an average of 40% higher than those who went it alone.
Report: Auto Injuries: Claiming Behavior and Its Impact on Insurance Costs
In a separate report issued by the IRC, the agency again looked at insurance payouts for auto accident injuries and how it was tied to attorney representation. This report contained even more astounding numbers than the study.
The IRC estimated that 85% of all money paid out for bodily injury claims by insurance companies are paid to victims with an attorney representing them. In addition, when they looked at the total amount paid out on all auto injuries claims, those with attorneys were paid 3 ½ times more than those who did not hire an attorney. For example, that’s the difference of $10,000 versus $35,000!
The IRC study shows that insurance companies will take advantage of victims who do not have anyone looking out for their best interests.
Study: Attorney Involvement in Auto Injury Claims
Another study done by the All-Industry Research Advisory Council (ARAC) also revealed the difference in payouts with a lawyer versus without. First, the study showed those with larger losses were more likely to hire an attorney. Second, like the IRC study, the ARAC study found that when an attorney was hired by the victim, they received a significantly larger settlement.
For example, victims with attorneys received $1.59 per dollar that was lost due to the accident, where those without a lawyer only received $1.26. In a $20,000 claim, the difference would be about $6,600 and in a larger claim of $100,000, the difference would be $33,000, and so on. The bottom line is that it is wise to hire an experienced personal injury attorney to fight for you.